Trump blocks Qualcomm takeover attempt

The tech industry's cozy ties to China may not last

President Donald Trump blocked Singapore chipmaker Broadcom from pursuing a hostile takeover of US rival Qualcomm, ruling the proposed combination would imperil national security.

Broadcom shares were up 2 percent in trading before the bell on Tuesday.

The President's decision was made on the recommendation of the Committee on Foreign Investment in the United States (CFIUS), which reviews national security implications of foreign purchases of USA entities.

The White House statement directs Broadcom and Qualcomm to "immediately and permanently abandon the proposed takeover", and verify in writing to the foreign investment committee that they have indeed terminated the deal and any such variation. Before waiting for an actual deal, CFIUS opened an investigation to review the risks to national security.

In his presidential order, Trump said there was "credible evidence" to suggest that Broadcom "through exercising control of Qualcomm Incorporated (Qualcomm), a DE corporation, might take action that threatens to impair the national security of the United States".

The order also states that Broadcom will not be allowed to purchase or merge with Qualcomm in any way and that all of the people Broadcom has proposed to Qualcomm's board are disqualified.

Over the weekend, news emerged that Intel was interested in buying Broadcom, which was still looking to buy Qualcomm, which wants to acquire NXP.

On Sunday, CFIUS sent a letter to lawyers at Broadcom and Qualcomm claiming that had repeatedly violated an order to inform the panel five days ahead of any action on its plan to redomicile from Singapore to the US.

Although Broadcom could appeal the president's decision, Trump's action looks to have drawn a line under a takeover saga that began back in November.

More news: Musk Says SpaceX To Conduct Test Flights Of Mars Ship Next Year

A CFIUS investigation of the proposed acquisition so far has "confirmed" national security concerns earlier identified by U.S. officials, according to the letter.

The best part about it is that Huawei did nothing to block the Qualcomm deal. The committee last week directed Qualcomm to postpone its shareholder meeting so it could investigate the proposed Broadcom takeover to assess whether the deal poses any national security risk.

Most analysts assume Broadcom will now walk away from Qualcomm, with some flagging San Jose-based Xilinx Inc and Israel's Mellanox Technologies Ltd, both diversified makers of communications chips, as likely next targets.

Fortune contacted Broadcom and Qualcomm for comment and will update this story if they respond.

Broadcom had been pursuing Qualcomm for about four months.

Qualcomm and a host of other big technology companies are racing to build a next-generation nationwide network known as "5G" with download speeds that could be 100 times faster than what most consumers experience now on their wireless service.

"Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns", a Broadcom statement notes.

As of now, it is not clear if such a move from the Singapore-based company will win Trump's approval. CEO Hock Tan sent letters to every US senator and representative, extolling the benefits of this takeover - stating that only a Broadcom-led version of Qualcomm can lead the developing standards for 5G wireless products in a direction that puts USA interests ahead of China's.

The decision by President Donald Trump to scuttle a hostile takeover by Singapore's Broadcom of the US chipmaker Qualcomm caught some on Wall Street off guard.

Related News:

  • Boise State to face Washington in NIT

    Penn State, which finished three spots lower than Nebraska in the conference, is the other Big Ten team. The Huskers will travel to Mississippi State to take on the fourth-seeded Bulldogs (22-11, 9-9 SEC).
    PUBG is getting a new map, vehicles, weapons, and emotes in 2018

    PUBG is getting a new map, vehicles, weapons, and emotes in 2018

    There is also yet another new map coming to the game that sounds like it's going to hit the experimental test server first. Just days ago, another anti-cheat patch left many legitimate PUBG players banned from the game for several hours.
    Half goals see Chelsea to victory over Crystal Palace

    Half goals see Chelsea to victory over Crystal Palace

    Roy Hodgson sent on Palace talisman Wilfried Zaha for the second half in place of Benteke, and it nearly paid off instantly.
  • Nebraska to play in NIT, Drake in the CIT

    Nebraska to play in NIT, Drake in the CIT

    I am sure Bill Walton is not pleased, but maybe we will be fortunate enough to hear his rants while he calls some of these games. It was after that when Nebraska coach Amy Williams started to feel like the Huskers had done what they needed to.

    Cleveland Browns Trade: Damarious Randall fits at corner or free safety

    The Green Bay Packers certainly didn't trade Damarious Randall on Friday night for salary cap reasons. He played in 15 games, completing just 53.6 percent of his passes for 2,894 yards and 11 touchdowns.
    Zinedine Zidane believes Gareth Bale is fundamental to Real Madrid

    Zinedine Zidane believes Gareth Bale is fundamental to Real Madrid

    Ronaldo scored twice, his second six minutes from the end, as Real won 2-1 and avoided another slip-up in La Liga. Eibar battled back after the break and levelled up on 50 minutes when Ivan Ramis headed home a corner.
  • Jonny Bairstow ton helps England win series against New Zealand

    Jonny Bairstow ton helps England win series against New Zealand

    England were lax at times in the field, with Moeen dropping Santner on 57, but they improved in the final overs. Taylor hit a six off Woakes in the 48th over, then New Zealand reached the 49th over needing 13 from 12 balls.
    Uhuru Kenyatta, Raila Odinga Move To Reconcile

    Uhuru Kenyatta, Raila Odinga Move To Reconcile

    Embassy. "I think the leaders want to say to [Tillerson], 'Look, we've buried the hatchet, we've moved forward". Political analyst and writer Patrick Gathara said such a dialogue is still needed despite Friday's meeting.
    Pentagon memo details plans for Trump's military parade

    Pentagon memo details plans for Trump's military parade

    Trump praised the French display months later when he and Macron met in NY , saying: "We're going to have to try and top it". Officials said they are anxious about the possible damage that non-wheeled vehicles could infict upon Washington streets.
  • Failures put fertility centers in the spotlight

    Failures put fertility centers in the spotlight

    He moved to San Francisco in 1990 and, with colleagues, purchased Pacific Fertility Center nine years later. UH officials said the lawsuit would not affect an ongoing independent review into the malfunction.
    Michigan State NCAA tournament practice at LCA open to public Thursday

    Michigan State NCAA tournament practice at LCA open to public Thursday

    Keep scrolling down and you come to the Big Ten , which has a final four of Michigan State , Purdue , Michigan and Ohio State . The 7-seed the Wolverines earned is their highest seed ever in five previous NCAA Tournament appearances.
    Elizabeth Hurley's Nephew Stabbed Multiple Times in London Knife Attack

    Elizabeth Hurley's Nephew Stabbed Multiple Times in London Knife Attack

    The Sun report that he was left "fighting for his life", with a source telling the publication: "His family feared the worst". "My 21 year old nephew was repeatedly stabbed in a brutal attack in London on Thursday night", she wrote .


Most liked

Japan Finance Minister Aso likely to skip G20 meeting
Polls have shown Abe's popularity declining as media reports suggested that document tampering had taken place. The head of the National Tax Agency, Nobuhisa Sagawa, who was in charge of overseeing the sale, has also quit.

Serena Williams gears up to launch her own beauty line
Serena was a mere shadow of her past self and managed to win just 54 percent of her first serve points in the first set. She closed out the 1 1/2-hour match on her second match point when Serena's forehand service return sailed long.

Why more professional athletes may follow Richard Sherman's example
No player with 300-plus targets has allowed a lower completion percentage (47.4) or passer rating (50.9) over the span either. While a poor connection with background noise garbled his media conference call, Sherman voiced no frustration.

Was Meghan Markle's beret a nod to Princess Diana?
She was joined by Princes Harry and William , the Duchess of Cambridge , Prince Charles and the Duchess of Cornwall . And, yes, she does know the words of the National Anthem.

Elizabeth Warren Is Asked About Being Called 'Pocahontas' By Trump
Warren also did not explicitly pledge to complete a second six-year Senate term if she's re-elected in November. Warren could deliver the rebuke of all rebukes to Trump by posting her DNA test results to back up her claims.

Trump to EU: We'll drop our tariffs if you drop yours
Malmstrom told reporters the European Union was ready to complain to the World Trade Organisation, and retaliate within 90 days. Trump received rare support, however, from a liberal Democratic congresswoman, Senator Elizabeth Warren of MA .

Tamil Nadu college students caught in forest fire, rescue operation on
Sitharaman remained in touch with the District Collector and directed the Indian Airforce to co-ordinate in the rescue operations. Earlier, a report from Coimbatore, quoting police, said two IAF "Sarang" helicopters from Sulur have left for Kurangani forest.

Move womankind forward on International Women's Day
Though International Women's Day is observed globally, it's not an official holiday in all countries. You can find a global list of anti-trafficking organizationsat CNN's Freedom Project .

Trump Commerce Secretary Says Warnings About Tariffs Are Overhyped
It was a decision that served the interests of Americans as well as businesses and workers in this country and Mexico. Mr Fox says he will travel to Washington next week when he will discuss the new duties.

Russian ex-spy, daughter still critical after nerve agent attack
Scotland Yard requested specialist help to remove vehicles and objects from scenes across the city amid fears of contamination. Military vehicles arrived at Salisbury District Hospital, where the victims are being treated, to take away a police auto .

Palestinian killed during clash with Israelis in West Bank
Avraham Binyamin, a Yitzhar spokesman, said two Palestinians were seen approaching Yitzhar with a "burning object". Israel says the entire city is its indivisible, and eternal capital.

Snapchat may soon allow you to tag people in snaps and stories
The extremely racist image features a white man telling a monkey to " keep cranking a n***er crime death counter ". According to the TechCrunch report , this isn't the first time Snapchat has been accused of having racist content.

Labour MP: Corbyn's views on immigration make Farage smile
It came as the Labour leader admitted having been a member of a controversial private Facebook group about Palestine . The spokesperson also said that Corbyn should not be held accountable for the discourse.

Patriots Acquire DT Danny Shelton From Browns
While there is still some work to do on the defensive side of the ball, getting Shelton is certainly a good start. With Shelton's deal, the Browns have released all of their seven first-round draft picks from 2012-15.

49ers to meet with Richard Sherman
Sherman was due $13 million for the 2018 season and his release gives Seattle a salary cap savings of about $11 million. But Sherman said at the Sports Star awards he thought he would be ready for the beginning of mini-camp.